OSI Systems (NASDAQ:OSIS) Shares Down 6.8% - Should You Sell?

Shares of OSI Systems, Inc. (NASDAQ:OSIS - Get Free Report) dropped 6.8% on Wednesday . The stock traded as low as $218.47 and last traded at $212.27. Approximately 53,052 shares traded hands during trading, a decline of 72% from the average daily volume of 192,834 shares. The stock had previously closed at $227.73.

Wall Street Analyst Weigh In

OSIS has been the subject of several research analyst reports. Wells Fargo & Company reduced their target price on OSI Systems from $220.00 to $210.00 and set an "overweight" rating for the company in a research note on Tuesday, April 8th. JPMorgan Chase & Co. initiated coverage on OSI Systems in a research note on Friday, February 21st. They set a "neutral" rating and a $225.00 target price for the company. Roth Mkm upped their target price on OSI Systems from $224.00 to $245.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. B. Riley reiterated a "buy" rating and set a $255.00 price target (up from $221.00) on shares of OSI Systems in a research report on Friday, May 2nd. Finally, Oppenheimer boosted their price target on OSI Systems from $225.00 to $260.00 and gave the stock an "outperform" rating in a research report on Monday, May 5th. Two analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $228.33.

OSI Systems Price Performance

The company has a quick ratio of 1.25, a current ratio of 1.88 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $3.66 billion, a PE ratio of 28.06, a PEG ratio of 1.81 and a beta of 1.28. The company has a 50-day moving average of $206.39 and a 200 day moving average of $191.11.

OSI Systems (NASDAQ:OSIS - Get Free Report) last issued its quarterly earnings results on Thursday, May 1st. The technology company reported $2.44 EPS for the quarter, topping the consensus estimate of $2.38 by $0.06. OSI Systems had a return on equity of 18.22% and a net margin of 8.15%. The firm had revenue of $444.35 million during the quarter, compared to analysts' expectations of $436.49 million. During the same period in the previous year, the business earned $2.16 earnings per share. The firm's revenue for the quarter was up 9.5% on a year-over-year basis. Sell-side analysts predict that OSI Systems, Inc. will post 9.22 EPS for the current year.

Insider Buying and Selling at OSI Systems

In other news, Chairman Deepak Chopra sold 20,000 shares of the stock in a transaction on Monday, May 5th. The stock was sold at an average price of $221.79, for a total transaction of $4,435,800.00. Following the completion of the transaction, the chairman now directly owns 339,478 shares in the company, valued at approximately $75,292,825.62. This represents a 5.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director William Francis Ballhaus, Jr. sold 933 shares of the stock in a transaction on Tuesday, May 6th. The stock was sold at an average price of $219.77, for a total value of $205,045.41. Following the transaction, the director now owns 24,805 shares of the company's stock, valued at approximately $5,451,394.85. This represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 42,371 shares of company stock worth $9,547,230 in the last three months. 5.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On OSI Systems

A number of hedge funds have recently modified their holdings of OSIS. Aster Capital Management DIFC Ltd purchased a new position in OSI Systems during the 4th quarter valued at about $25,000. Richardson Financial Services Inc. boosted its holdings in OSI Systems by 65.6% during the 4th quarter. Richardson Financial Services Inc. now owns 154 shares of the technology company's stock valued at $26,000 after acquiring an additional 61 shares during the period. National Bank of Canada FI boosted its holdings in OSI Systems by 118.2% during the 1st quarter. National Bank of Canada FI now owns 144 shares of the technology company's stock valued at $28,000 after acquiring an additional 78 shares during the period. Nisa Investment Advisors LLC boosted its holdings in OSI Systems by 139.5% during the 1st quarter. Nisa Investment Advisors LLC now owns 194 shares of the technology company's stock valued at $38,000 after acquiring an additional 113 shares during the period. Finally, Virtus Advisers LLC purchased a new position in OSI Systems during the 1st quarter valued at about $43,000. 89.21% of the stock is currently owned by hedge funds and other institutional investors.

About OSI Systems

OSI Systems, Inc designs and manufactures electronic systems and components. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation monitoring, explosive and narcotics trace detection systems, and optical inspection systems under the Rapiscan name.